Option Investor
Play Updates

In Play Updates and Reviews

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Long Play Updates

Health Net. - HNT - close: 41.83 chg: -0.47 stop: 39.95

HNT experienced some profit taking today. We are not suggesting new bullish positions given this bearish market environment. Be ready for HNT to dip toward the 10-dma or the $40.00 level to find support. Our target remains the $44.50-45.00 range for now but we'll adjust it lower as potential overhead resistance at the 50-dma (44.68) continues to descend.

Picked on May 16 at $41.12
Change since picked: + 0.71
Earnings Date 08/07/06 (unconfirmed)
Average Daily Volume: 1.1 million


Iconix Brand - ICON - close: 16.39 chg: +0.04 stop: 15.99

We are surprised that ICON showed any strength today. It was our expectation that shares would dip toward $16.00 and probably stop us out. Considering the market weakness this afternoon we're suggesting that conservative traders consider an early exit to minimize any losses. We are not suggesting new positions.

Picked on May 21 at $17.38
Change since picked: - 0.99
Earnings Date 07/27/06 (unconfirmed)
Average Daily Volume: 498 thousand


SLM Corp. - SLM - close: 53.71 chg: -0.46 stop: 52.85

SLM spent most of the day churning sideways. Unfortunately, the stock gave into the market weakness this afternoon. We would expect a dip toward $53.00 and its simple 50-dma. We are not suggesting new bullish positions until SLM once again trades over $54.75. More conservative traders may want to wait for a move over $55.00 first. Our target is the 57.40-57.50 range.

Picked on May 22 at $55.21*gap higher*
Change since picked: - 1.50
Earnings Date 07/20/06 (unconfirmed)
Average Daily Volume: 2.0 million

Short Play Updates

Coach Inc. - COH - close: 29.47 chg +0.05 stop: 31.55

Shares of COH produced another failed rally, this time near the $30.00 region. We see no changes from our previous updates. Our target is the $28.25-27.50 range. More aggressive traders may want to aim lower since the P&F chart points to a $22 target (it was $24). Keep in mind that COH is looking pretty oversold and due for a bounce!

Picked on May 11 at $31.45
Change since picked: - 1.98
Earnings Date 04/25/06 (confirmed)
Average Daily Volume: 2.3 million


K-Swiss - KSWS - close: 26.73 chg: -0.48 stop: 28.51

We are finally starting to see some real movement in KSWS. Shares lost 1.7% and closed at a new one-year low. Our target is the $25.15-25.00 range. More aggressive traders may want to aim lower. The P&F chart has seen its bearish target drop from $21 to $19.

Picked on May 12 at $27.45
Change since picked: - 0.69
Earnings Date 04/27/06 (confirmed)
Average Daily Volume: 300 thousand


Ryan's Restaurant - RYAN - cls: 12.70 chg: +0.18 stop: 13.01

It was an odd session for RYAN. The stock had a volatile morning with a spike to $12.89 before reversing course near its 10-dma. Shares spent the rest of the session in a very narrow 4-cent range. We expect the next move to be lower but we're not suggesting new positions until RYAN trades back under $12.25. Our target is the $11.35-11.25 range. Traders should note that the most recent data puts short interest at 5% of RYAN's 42 million-share float.

Picked on May 22 at $12.29
Change since picked: + 0.41
Earnings Date 04/26/06 (confirmed)
Average Daily Volume: 268 thousand

Closed Long Plays

Advanta - ADVNB - close: 35.87 chg: -0.35 stop: 34.99

The closing numbers today do not tell the whole story. Most of the market weakness on Tuesday occurred late in the session. ADVNB was no exception but the stock produced a sharp failed rally/bearish reversal near $38.00 early this morning. We are suggesting an early exit to minimize our losses. It is true ADVNB appears to have technical support at the 100-dma near 35.30 but we don't feel like risking it.

Picked on May 21 at $36.58
Change since picked: - 0.71
Earnings Date 04/26/06 (confirmed)
Average Daily Volume: 89 thousand


Universal Health - UHS - close: 51.52 chg: -1.33 stop: 51.45

Tuesday was pretty bearish for UHS. Shares were weak from the start and the selling only got worse as the day wore on. Oddly the volume did not even hit its daily average but we did note that the MACD on its daily chart produced a new sell signal. We have been stopped out at $51.45.

Picked on May 10 at $52.15
Change since picked: - 0.63
Earnings Date 04/27/06 (confirmed)
Average Daily Volume: 571 thousand

Closed Short Plays

Yahoo! - YHOO - close: 30.76 chg: +0.30 stop: 31.31

YHOO's oversold bounce continued into Tuesday. Shares gapped open higher at $31.03 and traded to $31.63 before fading lower. The move looks like a failed rally under its 50-dma and a potential entry point for new shorts. The bad news is that we've been stopped out at $31.31. We had the stop pretty tight to protect ourselves against a market-wide rebound, which oddly enough has failed to appear.

Picked on May 14 at $30.81
Change since picked: - 0.05
Earnings Date 07/26/06 (unconfirmed)
Average Daily Volume: 20.2 million

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